As Hispanic Heritage Month unfolds, we find it important to ensure that the Hispanic community understands and takes full advantage of the financial tools that can help secure their families’ financial well-being.
An important part of that financial toolkit is life insurance. And here’s why: It’s often overlooked. Most people think or want to think about death or not being there for their loved ones.
but this does Happens: 12-year-old Miranda Rivera saw how her family fell apart financially after her father, the breadwinner, passed away. (You can watch her story here). She was one of our Life Lessons Scholarship recipients, and she explains why getting life insurance is so important.
“Life insurance can’t bring parents back together, but it can make the road ahead easier for those left behind.”
And here’s why it matters that we talk about it openly: Hispanics have the lowest life insurance ownership rates of any race or ethnicity. Six in 10 have no coverage, according to a new report, “Hispanic Americans: Life Insurance Ownership and Attitudes,” 2022 Insurance Barometer Study by Life Happens & limra, But the silver lining is that 51% know they need life insurance, including 40% with no coverage and 11% who have some but know they need more.
affordable financial protection
The additional good news is that one of the top barriers to ownership is that many people, including Hispanics, think life insurance is too expensive. So why is that good news? Because 75% of people overestimate the true cost of life insurance. As a general guide, a healthy 30-year-old can get a 20-year term life insurance policy with $250,000 in coverage for about $13 per month.
Back to Financial Security: According to the Absolute Barometer, life insurance appears to be a key element Study, Two-thirds of people who have life insurance say they feel financially secure, compared to less than half of those who have none. Those who feel most secure have life insurance through both work and personal policies (78%). This is important for the Hispanic community to consider, as only 40% say they feel financially secure—18 points fewer than any other demographic.
Of course, financial security is a complex set of factors, but life insurance addresses an important one: income replacement. What if the bread earner dies? For Hispanics, more than a quarter (28%) said they would feel financial pain within a month or less, and nearly half said it would within six months (48%). That’s exactly what life insurance is designed to do—replace that lost income and ensure that the family remains financially sound.
Securing the Future—and the American Dream
Parents want a bright and better future for their children. Take Roberto Loera for example. He moved from Mexico to America to pursue the American Dream and ensure that his children would succeed and be able to attend college.
He made a commitment to get life insurance before rejoining his family in Colorado on less than $20 a month. He died tragically of a brain tumor at just 47, but his wife and two sons were financially sound, with college plans still intact. Roberto had paved the way for his family to not only survive, but thrive. (You can view his story in English or Spanish.)
Starting the journey of life insurance ownership is easy. You can learn more about the basics in English or Spanish. Then, you can use our online Life Insurance Needs Calculator, which is also available in English or Spanish. When you’re ready, contact an insurance professional who can help you choose coverage that fits your needs and budget. If you don’t have one yet, you can use this agent locator.